The Following Information Was Presented by Outdoors Manufacturing Company for an Asset

Multiple Choice

The following information was presented by Outdoors Manufacturing Company for an asset purchased at the end of the previous year. $$\begin{array} { | l | r | } \hline \text { Original cost of the asset } & \$ 20,000 \\\hline \text { Useful life of the asset } & 10 \text { years } \\\hline \text { Cashflow annual operating protit } & \$ 4,000 \\\hline \text { Sabage value } & \$ - 0 - \\\hline\end{array}$$ What is the return on investment (ROI) assuming Outdoors (a) uses the straight-line method for depreciation and (b) beginning-of-year net book values to compute ROI?

A) 11.1%.
B) 20.0%.
C) 10.0%.
D) 22.2%.